Year-End Processing in Dynamics GP. December 9, 2020

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Year-End

Processing in

Dynamics GP

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INTRODUCTION

Charles Allen

• Managing consultant

• Almost 30 years’ experience

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Year-End Closing Agenda

• 9–9:05 a.m. Introduction • 9:05–9:45 a.m. Payroll

• 9:45–10:15 a.m. Fixed Assets • 10:15–10:20 a.m. Break

• 10:20–10:50 a.m. Inventory

• 10:50–11:10 a.m. Payables Management • 11:10–11:30 a.m. Receivables Management

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Payroll &

Human

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Payroll Year-End Closing Procedures

• Changes for 2020

 Affordable Care Act form & instruction

 Box 14 for pay codes for reporting COVID/FFCRA pay

 941 • No changes  W-2  W-3  W-4  EFW2

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Payroll Year-End Closing Procedures

• Important notes about year-end update

 It’s available!

 Updates for versions 2016, 2018, 18.x (installing for 2018 takes you to 18.3)

 Year-end update files include all service packs for the respective versions being updated

 Includes fixes to modules in addition to form changes

 Make sure you verify all customizations & third-party products are compatible (please!)

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Payroll Year-End Closing Procedures

• Fixes (18.3.1200)

 It includes a fix for the Word template issue!

 You may notice based on data size the Tax reports (Tax Details & Tax Transaction Summary reports) have performance degradation

 SQL 2019 issue on 18.2 “There is insufficient system memory in resource pool ‘default’ to run this query” Rolling down account segment description

 The Payroll Recreate Paystub includes Business Expense in Current Amount field which is incorrect

 Changes to new Print Sales Documents feature in 18.3.

 1099 description for Misc & NEC & HR SSN mask are not updating when upgrading form midyear 2020

 General Ledger user defined fields cannot be searched on in SmartList

 When you install 18.3 General Ledger Copy & paste does not seem to work in certain cases

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Payroll Year-End Closing Procedures

• Fixes (16.00.0814)

 VAT Daybook Summary & VAT Daybook Detail reports do not include ALL records for JE's from GL (SERIES=5) in box 7 & Box 9 net purchasing amounts

 VAT Return window unable to SAVE edits after installing 2020 midyear update

 2020 Year-end update Form 1096 to include the totals for 1099-NEC verify 1099 too

 Template Issues with recent Office Update – September 2020 – FIXED

 Fixed Assets Enhancements Australian install a get/change operation on table 'FA_General_Information_MSTR' failed accessing SQL Data

 Changes were made to the Payables Utility Update 1099 information around updating vendors from 1099 to 1099-NEC

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Payroll Year-End Closing Procedures

• Where to find year-end update files

 GP 2016 – MicrosoftDynamicsGP16-KB4569476-ENU.msp https://mbs.microsoft.com/customersource/northamerica/GP/dow nloads/tax-regulatory-updates/usgpye2016  GP 2018 – MicrosoftDynamicsGP18-KB4569474-ENU.msp https://mbs.microsoft.com/customersource/northamerica/GP/dow nloads/tax-regulatory-updates/usgpye2018

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Payroll Year-End Closing Procedures

• Version information after the update

 GP 2016 – 16.00.0864

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Payroll Year-End Closing Procedures

• Installing year-end update

 Make a backup of all GP-related databases

 Back up the GP folder on the machine being used to update the system

 Back up your forms & reports dictionaries

 Back up eConnect PRE & POST procedures if customized

 Get updates for all ISV solutions & customizations

 Export all modified reports & forms to package file

 Turn on dexsql.log file creation

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Payroll Year-End Closing Procedures

• Installing the year-end update

 Make sure your server has plenty of space available

 To apply update, right-click on MSP file & choose Apply

 Convert the data using GP Utilities

 Update Forms & Reports Dictionaries using GP Utilities

 Install ISV updates

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Payroll Year-End Closing Procedures

• Update the workstations

 Identify all workstations to be updated

 Check the DYNAMICS.SET file for the location of the dictionary files – back up the dictionary files

 Apply the service pack

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Payroll Year-End Closing Procedures

• Checking your data

 W-2 box information for deductions & benefits

 Retirement plan checkbox is marked for employees

 Payroll summaries match details

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Payroll Year-End Closing Procedures

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Payroll Year-End Closing Procedures

Make sure the Retirement Plan is marked if the employee is enrolled in a retirement plan

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• (Required) Install the year-end update

• (Required) Verify version of GP you are using • (Required) Complete all pay runs for 2020

• (Optional) Complete all monthly & quarterly procedures for payroll – you may not be ready yet

• Back up the Dynamics & company databases

• (Required) Close Payroll Year, Tools >> Routines >> Payroll >> Year-End Closing

• (Recommended) Make a backup of databases

• (Recommended) Verify W-2 & 1099-R statement information

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Payroll Year-End Closing Procedures

• (Optional) Print W-2 statements & W-3 transmittal form • (Optional) Print 1095-C forms & electronically file 1094-C

• (Optional) Print 1099-R Validation Report, 1099-R forms & 1096 Transmittal form

• (Required) File your taxes

• (Required) Submit ACA information

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Payroll Year-End Closing Procedures

• (Optional) Close fiscal periods for payroll series in 2020 • (Required) Install payroll tax update for 2021

 Maintenance >> U.S. Payroll Updates >> Check for Tax Updates

 You need to use GP with Administrative privileges to download tax updates

 You will need your authorization number – this is usually your main phone number with area code – check CustomerSource account information

 Do NOT install the tax tables until you have closed the year in ALL companies

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Payroll Year-End Closing Procedures

• Verify year-end update has been applied

• Open Payroll Setup window (Microsoft Dynamics GP Menu >>

Tools >> Setup >> Payroll >> Payroll) & check last year-end

update date – it should be November 20, 2020

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Payroll Year-End Closing Procedures

Verify the Last Year-End Update is updated

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Payroll Year-End Closing Procedures

• Magnetic media filers take note

 Confirm registration with SSA

 Complete all pay runs in 2020

 Create Year-End Wage file

 Verify W-2 amounts

 Confirm that no one updates W-2 data while electronic filing is in process

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Payroll Year-End Closing Procedures

• Dynamics GP supports electronic filing of federal W-2 data

• Dynamics GP does not support electronic filing of any other forms

• Greenshades & Aatrix provide electronic filing solutions for GP

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Originating Tables for W-2

Table Usage

UPR00100/UPR00102 Employee name & address

UPR00400 Pay code W-2 box information

UPR00500 Deductions & W-2 box information

UPR00600 Benefits & W-2 box information

UPR00900 Federal wages & withholding

UPR30301 State & local tax wages & withholding

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W-2 Data Is Stored Here

Table Usage

UPR10100 Year-end header

UPR10101 Employee W2 amounts

UPR10103 Pension information

UPR10104 Special amount information

UPR10105 State tax information

UPR10106 Local tax information

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What’s New in GP

• Print W-2 forms from GP with lines! No more forms to buy (2016 R2

& beyond users only)

• Publish W-2 forms for

employee self-service

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ACA Forms & Filing

• Deadline for 1095-C is January 31, 2021

• GP does not produce an electronic file

• You can add dependents in Edit W-2 window

• Data can be uploaded directly into year-end tables (ask us for a

template)

• Use HR Health Benefit Enrollment window to add data for

employees

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Payroll Year-End Closing Procedures

• For more information, consult Payroll User Guide or Microsoft’s

year-end blog

• https://docs.microsoft.com/en-us/dynamics-gp/payroll/us-year-end?source=docs

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Payroll Year-End Closing Procedures

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Fixed

Assets

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Fixed Assets Year-End Closing

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Effects of Closing Year

• Items updated during close

 Updates Begin Quantity on Asset General Information

 Clears YTD Maintenance amount

 Clears YTD Depreciation amount

 Copies Cost Basis amount to Begin Year Cost

 Copies LTD Depreciation to Begin Reserve

 Copies Salvage Value to Begin Salvage

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Fixed Assets Year-End Closing

• Perform all year-end closing for payables – ensures Fixed Assets-related transactions are done

• Enter all fixed asset transactions for year

• Depreciate all assets through end of year for all books (use last day of year as through date)

• Perform GL posting through end of year, if using GL • Run year-end reports

• Verify fixed asset calendar is built correctly • Verify quarters are set up correctly

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Important Information

• You should not manually update year on Book Setup window

(Financial Area >> Setup >> Fixed Assets >> Book)

• In GP 2015, a new report was added that is optional. The Fixed

Asset Year-End Closing Report is a status report of all assets

affected by close

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Fixed Assets Year-End Closing

• Reports to print

 Annual Activity  Additions  Retirements  Transfers  Depreciation Ledger  Property Ledger

 Fixed Asset to General Ledger Reconciliation

 Book to Book Reconciliation

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Fixed Assets Year-End Closing

• For more information, consult Fixed Assets User Guide or

Microsoft’s blog

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Fixed Assets Year-End Closing

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Effects of Closing Inventory Year

• Closing year for inventory

 Updates each item's beginning quantity to be quantity on hand at each site

 Quantity sold field for each item is reset to zero

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Effects of Closing Inventory Year

• Optional

 Remove discontinued items

 Remove sold purchase receipts

 Remove cost change history information

 Remove sold lot attributes

 Update standard costs of items using FIFO or LIFO Periodic cost methods

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Inventory Year-End Closing Tips

• If you mark Update Item's Standard Cost, Standard Cost for any

Items assigned FIFO periodic or LIFO periodic, Valuation

Method will be adjusted automatically to reflect each item's

current cost

• Current cost is amount you most recently paid for item

• Inventory has no year-end closing report

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Inventory Year-End Closing Procedures

• Post all transactions for year affecting inventory quantities • Reconcile inventory quantities (SOP  POP  IV)

• Complete physical inventory count & post any adjustments • Print additional reports

• Back up your company database • Close year

• Close fiscal periods for inventory series (optional – but recommended)

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Physical Inventory

• Create stock count schedule

• Start count – this “freezes inventory”

• Stock print options allows you to print count sheet

• Physically count inventory

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Inventory Year-End Closing

• For more information, consult Inventory User Guide or

Microsoft’s blog

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Inventory Year-End Closing Procedures

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Payables

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Payables Management

• What’s changed in the update

 Payables 1096 form updated for 1099 NEC amounts

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1099-MISC Form

Nonemployee compensation box has been moved to 1099-NEC

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1099-NEC

• New form

• Used for nonemployee compensation

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Effects of Closing Year

• Calendar Year-End close updates 1099 YTD & Last Year

amounts

• Fiscal Year-End close transfers other YTD amounts to Last Year

amounts

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Year-End Closing Procedures for Payables

• Master year-end closing checklist

 Post all transactions for year

 Print Aged Trial Balance with Options report

 Print Vendor Period Analysis report

 (Optional) Install Payroll Year-End Update

 Verify 1099 data

 Print 1099 statements

 Close year

 Close fiscal periods

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Year-End Closing Procedures for Payables

• Calendar year-end closing list

 Print Aged Trial Balance with Options report

 (Optional) Install Payroll Year-End Update

 Verify 1099 data

 Print 1099 statements

 Close calendar year

 Close fiscal periods

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Year-End Closing Procedures for Payables

• Fiscal year-end closing checklist

 Close fiscal year

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Printing 1099s

• Print 1099 statements

 Microsoft Dynamics GP menu >> Tools >> Routines >> Purchasing >> Print 1099

 Data is pulled from the 1099 Details window for each vendor

 The data is not dependent upon the year-end close

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Printing 1099s

Create a SmartList to

view the 1099 period

details for each vendor

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Closing Year for Payables

• Electronic filing of 1099

 GP does not support electronic filing of Federal 1099s

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Payables Closing Tip

• Recommendations

 Post all payables transactions for calendar year before closing year

 Entering future-period payables transactions prior to closing year

• Enter new year transactions in separate batch • Post new year batch after closing year

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Payables Closing

• For more information, consult Payables Management User

Guide or Microsoft’s blog

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Payables Year-End Closing Procedures

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Receivables

Management

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Effects of Closing Year

• Clears following fields

 Finance Charges Current YTD

 Total # Finance Charges YTD

 Total Finance Charges YTD

 Total Waived FC YTD

 Unpaid Finance Charges YTD

• Updates following fields

 Finance Charges LYR Calendar

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Receivables Year-End Closing Procedures

• Post all transactions for year

• Do not post transactions in the new year

• Make backup

• Close calendar year

• Close fiscal year

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Receivables Closing

• Areas not date-sensitive

 Amounts since last close

 Customer finance charge summary = window

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Receivables Closing

• For more information, consult Receivables Management User

Guide or Microsoft’s blog

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Receivables Year-End Closing Procedures

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General

Ledger &

Analytical

Accounting

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Effects of Closing Year

• Transfers amounts to transaction & account history • Reconciles & summarizes General Ledger balances • Closes P&L accounts to Retained Earnings

• Clears all profit & loss account balances for new year

• Summarizes year-end balance sheet accounts to bring balances forward to new fiscal year

• Removes inactive accounts with zero balances • Prints Year-End Closing Report

• Updates Unit Account Balances • Updates AA tables

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Analytical Accounting

• Verify AA balances are correct

before

closing year!

• There is no AA-specific routine for closing year

• AA is closed as part of General Ledger close

• There are very important settings in AA that affect the data

• If you want BBF entries for dimensions, ensure that the

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General Ledger Year-End Closing

• Pre-close

 Because year-end close moves data from one set of data to another by using temporary tables, confirm you have enough hard drive space

 Must have free disk space equal to size of GL20000 table

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General Ledger Year-End

Closing Procedures

• Close all other modules

• Post final adjustments

• Use Accounts SmartList to verify Posting Type (Balance

Sheet vs. Profit Loss)

• Confirm Maintain History is marked in Financial Area >>

Setup >> General Ledger >> General Ledger

• Print Trial Balance Detail report to file for preservation &

verification of data

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General Ledger Year-End

Closing Procedures

• Print final financial reports

• Set up new fiscal year in fiscal period setup

• Close fiscal year (GP 2013 added a progress bar to this routine)

• Back up your company database

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General Ledger Closing Tip

• Run Accounts SmartList for GL Accounts & review

Posting Type for accuracy!

• Remember

 Balance Sheet Type accounts will have balance forward in new year

 Profit & Loss Type accounts will be closed to retained earnings & have zero balance in new year

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General Ledger Closing

• For more information, review your General Ledger User Guide

or Microsoft’s Year-End blog

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General Ledger Year-End

Closing Procedures

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Resources

https://docs.microsoft.com/en-us/dynamics-gp/payroll/us-year-end?source=docs

W-2 Statement Data Source Guide

Microsoft Dynamics GP Support & Services Blog

https://community.dynamics.com/gp/b/dynamicsgp/default.aspx

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• Microsoft Dynamics GP – 877.253.7778

[email protected]

• Monday–Friday, 8 a.m.–5 p.m.

Support Center toll-free

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BKD Holiday Hours

• During upcoming holiday season, BKD will be closed

following days

 December 23–26

 January 1

• Holiday Support Contact

 Please contact our Support Center at [email protected] or 877.253.7778

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Happy Holidays

• We wish you & your

family a safe & happy

holiday

• We hope 2021 brings

you much happiness

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Thank You!

Charles Allen, Senior Managing Consultant 713.499.4629 | [email protected]